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Western Areas LtdHalf Year Results to 31 December 2013Half Year Results to 31 December 201318 February 2014
“Think Nickel, think Western Areas”
Disclaimer and Forward Looking Statements
This presentation is being furnished to you solely for your information and for your use and may not be copied, reproduced or redistributed to any other personin any manner. You agree to keep the contents of this presentation and these materials confidential. The information contained in this presentation does notconstitute or form any part of any offer or invitation to purchase any securities and neither the issue of the information nor anything contained herein shall formthe basis of or be relied upon in connection with any contract or commitment on the part of any person to proceed with any transactionthe basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction.
The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and persons into whose possession this presentation comesshould inform themselves about, and observe, any such restrictions.
The information contained in this presentation has been prepared by Western Areas Ltd. No representation or warranty, express or implied, is or will be made inor in relation to, and no responsibility or liability is or will be accepted by Western Areas Ltd, employees or representatives as to the accuracy or completeness ofthis information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expresslydisclaimed. No party has any obligation to notify opinion changes or if it becomes aware of any inaccuracy in or omission from this presentation. All opinions andprojections expressed in this presentation are given as of this date and are subject to change without notice.
This document contains forward‐looking statements. These statements are based on assumptions and contingencies that are subject to change without notice,This document contains forward looking statements. These statements are based on assumptions and contingencies that are subject to change without notice,and certain risks and uncertainties that could cause the performance or achievements of Western Areas Ltd to differ materially from the information set forthherein. Western Areas Ltd undertakes no obligation to revise these forward‐looking statements to reflect subsequent events or circumstances. Individualsshould not place undue reliance on forward‐looking statements and are advised to make their own independent analysis and determination with respect to theforecasted periods, which reflect Western Areas Ltd’s view only as of the date hereof.
Th i f ti ithi thi P P i t t ti il d b W t A t b t th i f ti it l t t i l dThe information within this PowerPoint presentation was compiled by Western Areas management, but the information as it relates to mineral resources andreserves was prepared by Mr. Dan Lougher and Mr. Andre Wulfse. Mr. Lougher and Mr. Wulfse are full time employees of Western Areas Ltd. Mr. Lougher andMr. Wulfse are members of Australian Institute of Mining and Metallurgy (AusIMM) and have sufficient experience which is relevant to the style of mineralisationand type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’(2012 JORC Code). Mr. Lougher and Mr. Wulfse consent to theinclusion in this presentation of the matters based on the information in the form and context in which it appears. The information contained in this presentationin relation to the Flying Fox Mine was prepared and first disclosed under the 2004 Edition of the JORC Code. It has not been updated since to comply with the2012 JORC Code on the basis that the information has not materially changed since it was last reported.
For the Purposes of Clause 3.4(e) in Canadian instrument 43‐101, the Company warrants that Mineral Resources which are not Mineral Reserves do not havedemonstrated economic viability.
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Key Takeaways – Half Year
LTIFR of 1.83 – one of the lowest in the hard rock mining industry
15,697t nickel in ore production, grade averaging 4.9% nickel
Nickel in concentrate production of 13,020t
Nickel in concentrate sales 12,963t to Jinchuan and BHPll h d f d A$2.41/lb cash cost in concentrate:
Remains best in class in Australia 10% lower than FY13
All ahead of guidance
Capital and Exploration Expenditure incurred A$25.8m – guidance now <A$60m full year
EBITDA margin improved 20% to 45.6% from 2nd half FY13: R fl t i t f t d ti ti iti d f l f S tt d Q ll d d Reflects impact of cost reduction activities and successful ramp up of Spotted Quoll underground
Underlying NPAT of A$4.3m on reported NPAT of A$2.7m (post FinnAust expenditure): 2nd Half FY13 was an underlying Net Loss after Tax of –A$0.7m Positive Quotation Period adjustment of A$1.0mPositive Quotation Period adjustment of A$1.0m Interim fully franked dividend of 1c per share
Free cashflow generation A$19.2m: 2nd half FY13 was a net cash outflow of A$5.1m
3
2 half FY13 was a net cash outflow of A$5.1m
Announced A$89m Placement and A$15m Share Purchase Plan (see separate announcement and presentation released today)
Financial Snapshot
Half Highlights 2H 2013 1H 20142H FY13 had record shipments and sales delayed from the previous half
Mine Production (tonnes Ni) 14,872 15,697Mill Production (tonnes Ni) 12,596 13,020Recovery 90% 89%
Unit cash costs reduced by 10% through cost savings initiatives
ySales Volume (tonnes Ni) 14,067 12,963Cash Costs (A$/lb) 2.68 2.41Exchange Rate USD/ AUD 1.01 0.92
Sales revenue lower on lower volume
g /Nickel Price (U$/tn) 15,146 14,212 Sales Revenue (A$'000) 152,721 143,374 EBITDA (A$'000) 58,302 65,411
NPAT increased $5.0m, i Fi A
EBITDA increased $7.1m and EBITDA margin improved 20%
EBITDA (A$ 000) 58,302 65,411Underlying EBIT (A$'000)* 17,220 20,723Underlying NPAT (A$'000)* (689) 4,267Reported NPAT (A$'000) (96 222) 2,671 prior to FinnAust costs
Lower capex in 1HFY14 and no financing transactions. A$24.2m
Reported NPAT (A$ 000) (96,222) 2,671Free Cashflow (A$'000) (5,127) 19,181 Cash at Bank (A$'000) 80,719 99,900Dividend (cents) 0 0 1 0
4
turnaround from 2HFY13
* Underlying removed the impact of FinnAust Plc costs
Dividend (cents) 0.0 1.0
Income Statement
Commentary (2H 2013 v 1H 2014)
Sales revenue impacted by record higherEarnings Data ($'000) 1H FY 2013 2H FY 2013 1H FY 2014 Sales revenue impacted by record highervolume in 2H2013 due to shipmenttiming versus 1H2014.
EBITDA dollars and margin improvementa direct reflection of cost improvement
Earnings Data ($ 000) 1H FY 2013 2H FY 2013 1H FY 2014Exchange Rate USD/ AUD 1.03 1.03 0.92 Nickel Price (U$/tn avg) 17,122 15,146 14,212 Revenue 158,963 152,721 143,374 p
and productivity initiatives delivering.
D&A expense increased due to highervolume Lounge Lizard ore mined.
FinnAust 68% owned and therefore
, , ,EBITDA 67,565 58,302 65,411 EBITDA Margin % 42.5% 38.2% 45.6%
Depreciation & Amortisation (44,186) (41,082) (44,688) FinnAust 68% owned and therefore
consolidated. Expenditure mainlyrelated to listing on AIM.
Commentary (1H 2013 v 1H 2014)
R $20 l d li d
Underlying EBIT 23,379 17,220 20,723 Interest Expense (13,671) (13,065) (13,431)Tax (3,429) (4,845) (3,025)
Revenue $20m lower due to realisednickel price.
EBITDA dollars steady but marginimproved by 10%.
Underlying NPAT 6,279 (689) 4,267 FinnAust expenditure ‐ ‐ (1,596)Tax effected Impairment (4,162) (95,533) ‐ Reported NPAT 2,117 (96,222) 2,671 Dividend (cents) 2.0 0.0 1.0
5
Income Statement Waterfall – Half Year
80 WSA NPAT ‐ 2H FY 2013 vs 1H FY 20141.6 1.8
8.314.5
39 1136
14.3
13.4
20
40
60
80 WSA NPAT 2H FY 2013 vs 1H FY 2014
‐$96.2 $2.7
39.1136.5
‐20
0
20
H FY 201
3
airm
ents
t of Sales
enue
(FX)
Finn
Aust
Other
ue (P
rice)
nue (Vol)
Tax
H FY 201
4
$m
‐80
‐60
‐40 2H Impa
Cost
Reve
Revenu
Reven
1H
Comments:
‐100
Comments:1. Impairment charge in 2H 2013 related mainly to historical exploration2. Reduced volume of sales and nickel price was largely offset by a stronger AUD3. Cost of Sales decrease reflects cost improvement realisations, partially offset by increased depreciation & amortisation4. FinnAust expenditure of $1.6m primarily relates to listing costs of FinnAust on the London AIM
6
Cashflow Statement
Commentary (2H 2013 v 1H 2014)
Operating cashflow difference drivenCashflow Statement ($'000) 1H FY 2013 2H FY 2013 1H FY 2014 Operating cashflow difference drivenmainly by reduced sales volume andworking capital movements in1H2014 (timing difference).
Reduced capital expenditure and
($ )Operating Cashflow 48,076 64,039 49,201 Less:Exploration (12,795) (7,385) (9,976)
mine development as mines mature.
Free cashflow improved by $24.3m.
Commentary (1H 2013 v 1H 2014)
Operating cash flow slightly higher
FinnAust Investment (2,297) (2,033) (2,370)Mine Development (15,475) (20,052) (15,629)Capital Expenditure (14,333) (4,719) (1,974)
Operating cash flow slightly higherdespite a significantly reduced nickelprice due to the success of cost savinginitiatives.
Pre‐financing cashflow $16.1m
Pre‐Financing Cashflow 3,176 29,850 19,252 Investment activities ‐ (285) ‐ Outokumpu Royalty Payout (14,317) ‐ ‐ P f b idi Pre financing cashflow $16.1m
stronger due to reduced capex spend.
Free cashflow $19.2m improved dueto no financing transactions for1H2014.
Payment for subsidiary ‐ ‐ ‐ Proceeds from Share Issues 50,000 15,009 ‐ Proceeds/(Costs) from Financing (2,231) (764) (71)Dividends Paid (10 784) (3 937)
Outokumpu LOM Royalty was retiredin 1H2013.
Dividends Paid (10,784) (3,937) ‐ Repayment of ANZ facility ‐ (45,000) ‐ Repayment of convertible bond (105,500) ‐ ‐ Net Cashflow (79,656) (5,127) 19,181
7
Net Cashflow (79,656) (5,127) 19,181 Cash at Bank 85,846 80,719 99,900
Cashflow Waterfall – Half Year
WSA C hfl 2H FY 2013 1H FY 20142.0
8.38.3
12 3
11.8
4.4
50
60
70
80 WSA Cashflow ‐ 2H FY 2013 vs 1H FY 2014
$5 1 $19 2
15.0
15.645.0
12.3
10
20
30
40
$m
‐$5.1 $19.2
‐20
‐10
0
2H FY 20
13
ymen
t of A
NZ
facility
Sales (FX)
Cost of Sales
Developm
ent
Other
orking
Capita
l
es (P
rice $U
S)
SPP
ales (V
olum
e)
1H FY 20
14
Free cashflow generation improved by A$24.3m from the previous six months:1 Sales volume decrease related to the brought forward sales from the previous period
Repay
Mine D
Wo
Sale Sa
1. Sales volume decrease related to the brought forward sales from the previous period.2. Gains on the depreciation of the AUD were nearly offset by a lower US dollar nickel price.3. Significantly less financing transactions in 1HFY2014 with no debt repayments.
8
Balance Sheet
Commentary Improved balance sheet with A$100m
cash at bankBalance Sheet 1H FY 2013 2H FY 2013 1H FY 2014
cash at bank.
Post equity raise (assuming full take‐up)significant cash providing low gearingand flexibility:
C tibl b d J l 2014
Cash at Bank 85,846 80,719 99,900Receivables 26,276 18,610 19,240Stockpiles & Inventory 41,699 30,318 40,376
Convertible bond July 2014 –A$110.2m – COVERED BY CASH.
Convertible bond July 2015 –A$125.0m – COVERED BY CASHAND EXISTING UNDRAWN ANZ
PP&E 114,413 112,110 106,314Exploration & Evaluation 140,051 32,182 43,259Mine Development 272,104 241,776 225,559 AND EXISTING UNDRAWN ANZ
FACILITY.
Mine Development and PP&E reductionreflects reduced spend andamortisation charges.
Other 4,525 2,308 2,211TOTAL ASSETS 684,914 518,023 536,859Trade &Other Payables 45,216 36,911 33,526 g
FY14 combined guidance for capitalexpenditure, exploration and minedevelopment is now <A$60m.
Trade & Other Payables 45,216 36,911 33,526Short Term Borrowings 45,073 4,266 112,380Long Term Borrowings 265,296 233,842 138,267TOTAL LIABILITES 355 585 275 019 284 173TOTAL LIABILITES 355,585 275,019 284,173SHAREHOLDERS EQUITY 329,329 243,004 252,686
9
Investment Highlights
A high grade and low unit cash cost nickel producer
A proven explorer, developer and operator led by an experienced management team
An S&P/ ASX 200 index member
Market cap of around A$645 million at current prices prior to the equity raise Market cap of around A$645 million at current prices, prior to the equity raise
Profitable, even at the current low nickel price
A proven dividend payerA proven dividend payer
Strategic owner of sought after nickel in concentrate from traders and smelter operators. Offtake tender due to commence second half of CY2014
Employer of approximately 500 staff, either directly or through contractors
14 consecutive quarterly reports of no downside operational surprises
Committed to stable organic growth from the current solid platform Committed to stable organic growth from the current solid platform
Improving nickel price sentiment and outlook
10
Western Areas LtdOverviewOverview
“Think Nickel, think Western Areas”
Corporate Overview
WSA vs ASX 200 Resources (FY14 YTD)1 Key Information
5 000$3 50 as at 17 February 2014
Share price 3.28
52 week high/low (A$) 4.75 / 1.94
Shares outstanding (m) 196.93,000
4,000
5,000
$2.50
$3.00
$3.50
me
(000
s)
ce (A
$/sh
are)
Market Capitalisation (A$m) 645.7
Cash (A$m)2 99.9
Debt (A$m)2 235.2
1,000
2,000
$1.50
$2.00
Jul 13 Sep 13 Nov 13 Jan 14
Volu
m
Shar
e pr
ic
Top Shareholders Board & Senior Management
Undrawn ANZ Facility 125.0Source: IRESS
3
Volume WSA ASX 200 Resources
Name (%)
Terry Streeter 12.2
Schroder Investment Management 9.3
Name Position
Ian Macliver Non-Executive Chairman
Dan Lougher Managing Director & CEO
David Southam Executive Director
JCP Investment Partners 8.8
Commonwealth Bank 8.0
Joseph Belladonna Chief Financial Officer & Company Secretary
Julian Hanna Non-Executive Director
Richard Yeates Independent, Non-Executive Director
Robin Dunbar Independent, Non-Executive Director
12
Robin Dunbar Independent, Non Executive Director
Notes: Market data as at 17 February 20141. ASX 200 Resources Index rebased to WSA Share Price2. Cash as at 31 December 2013 half yearly report and convertible bond debt3. Based on Beneficial Owner analysis and ASX substantial shareholder notices (Form 604)
Strong Asset Base
Production Exploration Assets
Fl i F
& Growth
F t i &Flying Fox•1st nickel mine•15kt nickel per annum
Forrestania & WA Regional•Nickel Disciplined
A i i iannum
Spotted Quoll• 2nd nickel mine
Canadian Assets •Nickel/Copper
Acquisition Potential (Nickel &
Base Metals)•2nd nickel mine•10kt to 15kt nickel per annum
•Nickel/Copper•PGEs
Base Metals)Base Metals)
Cosmic Boy•Nickel concentrator – treats ore from
Finland•VMS•Outokumpu Cu
13
both minesOutokumpu Cu
Location
WSA concentrate to BHP Billiton
WSA operations
WSA concentrate exports
14
Western Areas are Safe Areas
Continuous Safety Improvement
LTIFR 1 836.0
7.0
LTIFR LTIFR 1.83
Flying Fox >175 days LTI free
Spotted Quoll >990 days LTI free3 0
4.0
5.0
Exploration >1,887 days LTI free
Cosmic Boy Concentrator >192 days LTI free
MTIFR 7.4 0 0
1.0
2.0
3.0
Contractors and employees fully integrated into a site wide commitment
Environment & Social
0.0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013
Environment & Social
No environmental breaches
Strong local commitments from the Hyden Respite Centre, Perth Zoo (Northern Quoll) and Starlight Children’s Foundation WA
15
Nickel Industry
16
Nickel Price Drivers
There are a number of factors that influence the nickel price including:1 Level of global nickel supply1. Level of global nickel supply2. Cost and capacity of Chinese nickel pig iron (“NPI”) production3. Indonesian nickel laterite export ban – implemented January 20144. Stainless Steel demand in China, Europe and North America
What we believe is occurring:1. Any perceived nickel oversupply is marginal – a supply response is beginning to occur:
Glencore – all Australian sulphide production ceased, Falcondo operation closed Norilsk – all Australian operations ceased, ex‐Russia projects up for sale Votorantim – nickel smelter being closed down in South America Talvivaara – well publicised production and funding issues Large HPAL projects still facing technical and high cost issues
17
Nickel Price Drivers (cont’d.)
2. Chinese NPI production capped between 450kt to 500kt of contained nickel. Unit costs range from US$6/lb to US$9/lb: Latest RKEAF technology relies on Indonesian laterite Laterite must be >1.8% Ni and <25% Fe – Philippines laterite is out of spec Large power consumer – power costs rising in China Total Chinese market for nickel is estimated to be between 800kt to 900kt per year – with
growth forecast to be at 5% per annum*
3. Indonesian ban implemented and exports have ceased: China is estimated to have between 6 and 9 months of Indonesian laterite supply* Uncertainty on ban staying in full force – Indonesian election process during April/ May Uncertainty on ban staying in full force Indonesian election process during April/ May Potential exists to raise laterite export taxes Believe there is now a cap on NPI production at worse
4. Stainless steel demand remains strong in China – moving to consumer based and building project demand
5. European stainless steel demand is muted, whilst US showing signs of a small recovery18* Based on global bank and industry publications and research from many sources, plus estimates based on discussions with Chinese counterparties
Operations
19
December Quarterly ‐ Outperformance
Comments1 Continued low unit cash costs for
HYTonnes Mined Mar Qtr Jun Qtr Sep Qtr Dec Qtr TotalFlying FoxOre Tonnes Mined Tns 82,668 73,716 86,642 83,095 169,737
2012/2013 2013/2014
1. Continued low unit cash costs for the Dec half. 10% down on previous half.
2. Positive reserve reconciliation on grade/tonnes plus cost reduction
Grade Ni % 4.9% 4.7% 4.8% 4.6% 4.7%Ni Tonnes Mined Tns 4,081 3,447 4,200 3,791 7,991 Spotted Quoll ‐ UndergroundOre Tonnes Mined Tns 59,335 53,465 77,097 74,720 151,817 Grade Ni % 5.2% 4.8% 5.3% 4.8% 5.1%Ni Tonnes Mined Tns 3 066 2 584 4 090 3 616 7 706 grade/tonnes plus cost reduction
program delivering results.
3. Production of nickel in ore and concentrate remain ahead of the guidance run rate
Ni Tonnes Mined Tns 3,066 2,584 4,090 3,616 7,706
Total ‐ Ore Tonnes Mined Tns 142,003 127,181 163,739 157,815 321,554 Grade Ni % 5.0% 4.7% 5.1% 4.7% 4.9%Total Ni Tonnes Mined Tns 7,147 6,031 8,290 7,407 15,697
HYT Mill d d S ld l
2013/20142012/2013guidance run rate.
4. Cash at Bank increased to A$100m with A$19m free cashflow for the half.
Tonnes Milled and Sold Mar Qtr Jun Qtr Sep Qtr Dec Qtr TotalOre Processed Tns 145,348 146,256 150,475 148,901 299,376 Grade % 5.0% 5.1% 4.9% 4.9% 4.9%Ave. Recovery % 91% 89% 90% 88% 89%Ni Tonnes in Concentrate Tns 6,611 6,634 6,593 6,427 13,020
Ni T i C t t S ld T 6 845 7 222 6 554 6 409 12 9635. 14 quarters in a row of on target
or better operational performance.
Ni Tonnes in Concentrate Sold Tns 6,845 7,222 6,554 6,409 12,963
Total Nickel Sold Tns 6,845 7,222 6,554 6,409 12,963 DEC
Financial Statistics Mar Qtr Jun Qtr Sep Qtr Dec Qtr YTDGroup Production Cost/lbMi i C t A$/lb 2 23 1 87 1 65 1 88 1 76
2013/20142012/2013
Mining Cost A$/lb 2.23 1.87 1.65 1.88 1.76 Haulage A$/lb 0.05 0.05 0.06 0.06 0.06 Milling A$/lb 0.41 0.38 0.40 0.44 0.42 Admin A$/lb 0.19 0.18 0.19 0.19 0.19 By Product Credits A$/lb (0.02) (0.02) (0.02) (0.03) (0.02)
Cash Cost Ni in Con A$/lb 2.86 2.46 2.28 2.54 2.41
20
Cash Cost Ni in Con A$/lb 2.86 2.46 2.28 2.54 2.41
Cash Cost Ni in Con/lb US$/lb 2.97 2.44 2.09 2.36 2.22
Exchange Rate US$ / A$ 1.04 0.99 0.92 0.93 0.92
Flying Fox Mine
Mineral Resource and Ore Reserve
High Grade (excluding disseminated sulphide resource) Mineral Resource: 1.64Mt @ 5.6% Ni = 92,600 Ni Tonnes
Ore Reserve: 1.55Mt @ 4.0% Ni = 61,920 Ni Tonnes
Underground drilling program to extend Mineral Resource is ongoingMineral Resource is ongoing
Over 700m strike length in T5
P d iProduction FY2013 – 348,448t @ 4.9% Ni for 17Kt nickel
Low cash cost operation
Estimated Life of Mine – 5‐6 Years, extensional drilling in progress
21
Spotted Quoll Mine
Mineral Resource and Ore Reserves Ore reserve now 2.9mt @ 4.3% containing125,440t nickel
Remains open at depth and to the North
Surface drilling program complete to improve conversion of inferred resource to indicated resource
Already >10 year mine life on reserve
New Spotted Quoll North Indicated and Inferred Resource of 140kt @ 9 3% f 12 906 i k l@ 9.3% for 12,906 nickel tonnes
Production FY2013 – 207,288t @ 5.1% Ni for 10.6KtFY2013 207,288t @ 5.1% Ni for 10.6Kt nickel
Successfully ramped up nickel production to a sustainable 12ktpa run rate in FY2014
Top‐down mining using paste fill. Plant fully operational 22
Spotted Quoll North
23
Exploration and Growth Outlook
24
Pillars for Growth
O i G hWestern Ultramafic Belt:
New Morning channelOrganic Growth New Morning channelBetween Spotted Quoll & Flying Fox
Selected Overseas ExplorationLeverage from WSA’s Concentrate off‐take
Traka Resources
Joint Ventures Southern Cross Base Metals – many opportunities being presented
Base MetalsBottom Half of the Cost C r e
AcquisitionsBottom Half of the Cost CurveUse WSA expertise – exploration, development and operationsThe 3 “D” – discipline and due diligence
25
The 3 D discipline and due diligence
Forrestania Tenements
Regional GeologyRegional Geology
120km strike length (900 sq km) of prospective Forrestania Nickel Project, within 400km long nickel provincewithin 400km long nickel province
Six ultramafic belts
Nickel sulphide deposits and most p poccurrences in two belts (Eastern and Western)
Western Ultramafic Belt hosts the high este U t a a c e t osts t e ggrade Flying Fox, Spotted Quoll and new Morning deposits
26
Short Term – Near Mine Exploration
Exploration Budget of A$15M for FY14, majority spent on drilling at Forrestania
Drilling Priority within 8km long zone (below) New discovery would access existing mineDrilling Priority within 8km long zone (below). New discovery would access existing mine infrastructure. Systematic approach
Recent New Morning massive sulphide and Sunrise discoveries
27
High Grade Discovery at New Morning
WSA’s latest new high grade discovery, g g y2.5km from Flying Fox and 2.8km from Spotted Quoll All material approvals in place,
i l j i &potential major capex savings & accessible from either mine
Massive sulphide discovered below New Morning:New Morning: 4.4m @ 7.4% nickel including 3.6m @ 8.7% nickel
3.0m @ 6.3% nickel including 2.4m @ 7.6% nickel
1.5m @ 5.6% nickel including 0.7m @ 10.2% nickel
d ll h Major drilling program continues with use of DHEM data
28
West Musgrave JV
Attractive entry point for highly prospectiveAttractive entry point for highly prospective landholding where significant pre‐work completed
Up to 70% earn into prospectiveWest Up to 70% earn into prospective West Musgrave tenements (1,075km2) with Traka Resources
Demonstrated strong endowment Demonstrated strong endowment(BHPB’s Nebo – Babel – Succoth deposits)
Targeting massive sulphides (nickel/copper)
Geophysical surveys commenced on priority targets (MLEM)
A number of highly conductive targets A number of highly conductive targets identified and drilling has commenced
29
Finland – FinnAust Mining Plc Projects
Listing on AIM completed in December 2013 and 68% WSA d t li tiWSA owned post listing
Current market cap circa A$20m
300km long base metal province in Finland300km long base metal province in Finland
Numerous nickel/copper/zinc mines & occurrences
Focus on two key projects:y p j
Outokumpu Copper Project
Hammaslahti VMS Project
Drilling commenced for potential extensions and repetitions to known copper deposits
Geophysics proving very effective in defining targets ‐ZTEM survey completed
18 months worth of drilling funds
30
Investor Equation
• High Grade = Margin
• Returns to shareholders in
• Guidance continuallyMargin
• Survivalshareholders in Dividends
continually met or exceeded
Highest Grade Nickel Globally
Cash flow Positive
Strong Track Record of Delivery
• Current global • New mine • Flexibility in gproduction at marginal cost
successfully brought on in 24 months
ymeeting future demands or opportunities
Nickel Price Primed for Upside
24 months
History of Discovery and Development
opportunities
Strong Balance Sheet
31
Upside Development
The End
32
